UK Pharma Firm Ordered to Repay €1.19 Million R&D grant to IDA
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The Court of Appeal has ordered UK-based pharma firm Avara Pharma Services Ltd to repay €1.19 million in a Research and Growth (R&D) grant to the IDA, stemming from a failed venture in Shannon, Ireland.
The court dismissed Avara’s appeal against a High court decision in October 2024, which granted summary judgment to the IDA for the outstanding amount.
The grant of €1.2 million was originally awarded to shannon-based UCB Manufacturing Ireland in February 2012 by shannon Development. In February 2016, Avara Pharma Services acquired UCB Manufacturing, with Shannon Development’s rights transferring to the IDA in 2014.
A 2017 Deed of Novation was established, transferring all rights and obligations under the R&D Grant Agreement from UCB to Avara Shannon. However, the Avara plant in Shannon faced financial difficulties, leading to the High Court ordering its winding up in 2019, resulting in the loss of 114 jobs. The court heard the business was losing €9.5 million annually.
The IDA subsequently pursued Avara Pharma Services for repayment of the €1.19 million R&D grant, a pursuit which ultimately led to the High Court’s summary judgment.
The Court of Appeal ruling references a letter from Avara’s majority shareholder, Leonard M. Levie, to the then CEO of IDA Ireland, Martin Shanahan, regarding the repayment request. Mr. Levie highlighted the Avara group’s €16 million investment in Avara Shannon over three years, which was ultimately lost due to the venture’s failure.
In his letter, Mr. Levie expressed confusion over the demand, stating, “Recently, I received a very puzzling letter from your team, seeking the repayment of a grant awarded to UCB in December 2011 for a total amount of €1,193,634, payable instantly.” He further stated, “My understanding is that the UCB Pharma Group benefited from the bulk of the referenced amount and that Avara received merely a trivial amount from this grant in 2018.”
Ms Justice Donald Binchy noted that Mr. Levie expressed being “somewhat surprisingly… perplexed” as to the request.
Courts to Hear Challenge to New Abortion Law
Dublin, Ireland – The High Court is set to hear a legal challenge to the recently enacted abortion legislation.The case, brought by a coalition of pro-choice groups, argues that certain provisions of the law unduly restrict access to abortion services.
The challenge focuses on the mandatory three-day waiting period before an abortion can be performed, and the requirement for two doctors to confirm the pregnancy meets the criteria outlined in the legislation. Plaintiffs argue these stipulations create unnecessary barriers for women seeking care, especially those in rural areas or facing time-sensitive medical situations.
“We believe these provisions are a clear infringement on women’s constitutional rights,” stated a spokesperson for the coalition. “They are not based on medical evidence and serve only to delay and obstruct access to essential healthcare.”
The state, represented by the attorney General, is expected to defend the legislation, arguing that the provisions are necessary to ensure careful consideration and protect the rights of the unborn.
The hearing is scheduled to begin next week and is expected to last several days. The outcome of the case could have notable implications for the future of abortion access in Ireland.
 Ireland has successfully appealed a decision regarding the repayment of a grant awarded to UCB, a pharmaceutical company, and subsequently novated to Avara. The appeal, heard by Mr. Justice Binchy, centers around a breach of the Grant Agreement under which the funds were initially provided.
Background of the Dispute
The IDA advanced a grant to UCB, and now seeks repayment from avara, based on allegations of a breach of the Grant Agreement and the Deed of Novation. Details of the original grant and the specific nature of the alleged breach were not immediately available, but the court found in favor of the IDA’s claim.
Court’s Decision
Mr. Justice Binchy rejected the appeal brought by Avara in its entirety. He stated that, given the IDA’s complete success in the appeal, his provisional view is that Avara should be ordered to cover the full costs of the appeal. Avara has been given two weeks to submit arguments, limited to 1,500 words, if they wish to contest this cost order.
Implications and Next Steps
The ruling signifies a win for the IDA in its efforts to ensure accountability for grant funding. The IDA plays a crucial role in attracting foreign direct investment to Ireland, and the enforcement of grant agreements is vital to maintaining the integrity of the programme.
Avara now has the chance to present arguments regarding the cost of the appeal. The final cost order will be steadfast either through agreement between the parties or by adjudication if no agreement is reached.
This case highlights the importance of adhering to the terms of grant agreements when receiving public funding. Further details regarding the specifics of the grant and the breach of agreement are expected to emerge as the cost adjudication process unfolds.
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